China Electric Motor disclosed its earnings forecast, expecting a net profit attributable to the parent company of 3.6 million to 5.4 million yuan for the first half of 2026, a year-on-year decline of 84.56% to 89.71%. Deducted non-recurring net profit is expected to be 3.2 million to 4.8 million yuan, down 72.98% to 81.98% year-on-year. The company stated that the decline in performance was mainly due to intensified competition in the motor market and rising prices of key raw materials, which led to a year-on-year decrease in revenue and gross margin. At the same time, the same period last year saw a large gain from a wholly-owned subsidiary reducing its holdings of Hong Kong-listed stocks, creating a high comparison base for the current period.
SEC Electric Mach Co LtdCompany expects net profit to drop 84.56%-89.71% YoY due to competition and raw material costs.